Take a look at your trading if you are not doing well, you will most likely find that you are not trading in the present.  You may be over thinking the market.  Your thoughts may be on past successes or past failures which take you away from trading in the present.  You could be thinking about all the money you will be making or all the money you have been losing.  All of this noise is just taking you away from the present and what the market is really doing.

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There are traders that make livings by making large gains with large losses.  Then there are traders that make a living with small gains and small losses.

Which ever style a trader uses they must be aware of what they are doing and keep the size of the wins and the size of the losses in relation to one another. 

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Trading is all about making money.  If you are doing it for any other reason then you are doomed for failure.  You need to trade from good old mechanical thinking, which is a mark of a good trader.  You get a signal you make a trade you get another signal you exit a trade.  Large profit, small profit, or small loss it is all part of the process in becoming a good trader.

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If you take trading seriously you will think of trading as a business.  Not just a hobby, or a way to get a quick rush, or a way to escape life’s problems, or a way of spending some of your extra time.  You can think of trading, as a lot of things but to make the big bucks you talk and dream about, you need to think of it as a business. 

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We talked about the amount of risk a trader has in the market now it is time to talk about how you feel about money.  If you have a big attachment to money then it will cause a big emotional strain when you lose some of the money.

One of the hardest things a new trader has to learn is how to loose.  Losing is part of trading.  Losses need to be looked at as expenses, or cost of doing business.  There is no Holy Grail or magic trading system that just has to be turned on and the money will roll in. 

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Over the next couple of weeks we will give you some of our thinking about why we are all different in our trading success. 

We have been asked what kind of results will we get with your trading system, what percentages of success will I get?

Let’s look at two traders.  They have the same capital, open account with the same brokerage, were taught by using the same trading system, have the same entry and exit signals.  Now give them some time to trade and check back.  One trader is up by 25% and the other is down by 30%.  It is interesting that with the same information two different traders get such different results.

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